As of April of 2026, various hospice and daycare centers have been put under investigation with both the centers of Medicare and Medicaid services estimating $3.5 million worth of fraud in California. This reflects the governmental negligence that allowed scammers to defraud hospice programs, putting the state of California at risk.

 This is not the time to point fingers or place the blame, but it is time for action. Our government needs to acknowledge that this is an opportunity to take accountability and raise the bar for California.

Fraudsters use “phantom billing,” a practice of submitting claims to insurance companies for non-existent people, leading to “ghost hospices,” a company that appears legitimate, but provides no services, meant to defraud Medicare and Medicaid. 

With 14 fraudulent hospice centers being found and over 300 providers being investigated in L.A. it is clear that this “fraud epidemic” is a widespread crisis that has turned California into an epicenter for exploitation. These schemes aren’t just a random pop up, but rather a culmination of crime spanning multiple years.

Audits dating back to 2022 uncovered that the California Department of Public Health (CDPH) and Department of Health Care Services (DHCS) didn’t properly coordinate on ways to evaluate fraud risks. There was a failure to properly analyze hospice license applicants, opening the door for a surge in fraudulent crime in Los Angeles.

 “Collecting this information (requirements that ensure hospice agencies provide adequate care) should be a high priority for Public Health, given the difficulty in determining the quality of care hospice agencies provide,” stated in California Hospice Licensure and Oversight.

Government programs ignored warning signs such as multiple hospices sharing the same address, suspicious billing patterns, and alarmingly high rates of patients with no terminally ill illnesses.

 “I do think there should have been better oversight of the industry by the government,” AP Government teacher Dr. Rudman explains. When intertwining profit and greed within healthcare systems substantial risks arise.

This fraudulent activity drains tax payer funds, puts elderly people at risk of having their identity stolen, and most of all a significant erosion of trust in regards to weak government oversight that contributed to massive economic losses.